Sweden-based industrial tools and equipment manufacturer Atlas Copco plans to make India its manufacturing hub and expects the country to be its third largest market in global sales, a top company official has said.

The company, which specialises in manufacturing of compressors, pumps, vacuum cleaners and tools used in the industrial business segments, has been present in the domestic market since the past 60 years and has manufacturing facilities in Pune, Nashik and Hyderabad.

"Currently, India is the fifth largest market for us.

Considering the higher economic growth, we see large demand for our products. We hope going forward, India will be at number 3 for us in terms of revenue, Atlas Copco President and CEO Mats Rahmstrom told PTI here.

He further said India, with its largest talent pool with engineering skills, will also be its manufacturing hub going forward.

"India is no longer a low cost manufacturing centre mainly because of the kind of talented engineers the country produces. We are more of an engineering company and India is now a place where we will innovate, add value and create IPs," Rahmstrom said.

The vacuum and compressor businesses, he added, have significant business potential here and the company is involved in most of the prestigious projects across the country.

Atlas Copco India, which has over 20 offices, reported revenue of Rs 3,400 crore as of March 2018 and has over 2,000 employees.

Currently, export from India is 15-17 per cent of sales which is likely to grow in the coming years.

"We will continue to invest here. We already have scope for expansion at our existing facilities, and if need be we will add more manufacturing units. Our aim is to also increase the exports from here," he added.